Method and system for auditing to detect transaction splitting activities

Abstract

A method for auditing to detect transaction splitting activities is related to a plurality of entries of accounting data each including at least a transaction information sub-entry and a time sub-entry. The method includes: performing a sorting operation on the accounting data based on the time sub-entries, so as to create a sorted list of accounting data; performing a grouping operation on the sorted list of accounting data, based on at least one grouping parameter, so as to obtain a plurality of groups of accounting data; and with respect to each of the groups, when the entries of accounting data included in the group indicate a date gap smaller than a predetermined time threshold, tagging the group as a candidate group, and tagging each of the entries of accounting data in the group as a potential split entry.

What is claimed is: 
     
         1 . A method for auditing to detect transaction splitting activities, the method to be implemented using a system that includes a processor and a data storage, the data storage storing a plurality of entries of accounting data therein, each of the plurality of entries of accounting data including at least a transaction information sub-entry and a time sub-entry, the method comprising:
 a) performing, by the processor, a sorting operation on the plurality of entries of accounting data stored in the data storage based on the time sub-entry, so as to create a sorted list of accounting data;   b) performing, by the processor, a grouping operation on the sorted list of accounting data, based on at least one grouping parameter and the transaction information sub-entries of the plurality of entries of accounting data, so as to obtain a plurality of groups of accounting data; and   c) with respect to each of the groups, by the processor, determining whether the entries of accounting data included in the group indicate a date gap smaller than a predetermined time threshold, and in a case where the entries of accounting data included in the group indicate a date gap smaller than the predetermined time threshold, tagging the group as a candidate group, and tagging each of the entries of accounting data included in the candidate group as a potential split entry.   
     
     
         2 . The method of  claim 1 , wherein step c) includes:
 c-1) with respect to each of the groups, determining, by the processor, whether a difference between an earliest date of transaction and a latest date of transaction included in the group is smaller than the predetermined time threshold; and   c-2) in a case where the determination of sub-step c-1) is affirmative, adding, by the processor, a tag which indicates a potential split entry to each of the entries of accounting data included in the group.   
     
     
         3 . The method of  claim 1 , wherein in step c), a plurality of candidate groups are tagged, the method further comprising:
 d) with respect to each of the candidate groups, by the processor, determining whether a number of potential split entries included in the candidate group is greater than a predetermined entry threshold, and in a case where the number of potential split entries included in the candidate group is greater than the predetermined entry threshold, adding a tag which indicates a confirmed split entry to each of the potential split entries included in the candidate group.   
     
     
         4 . The method of  claim 3 , wherein step d) includes:
 d-1) assigning an initial value to a variable which is to be associated with one of the potential split entries included in the candidate group;   d-2) determining whether the variable has reached the predetermined entry threshold;   d-3) in a case where the determination of sub-step d-2) is affirmative, adding the tag to each of the potential split entries included in the candidate group;   d-4) in a case where the determination of sub-step d-2) is negative, determining whether a current value of the variable equals a total number of the potential split entries included in the candidate group;   d-5) in a case where the determination of sub-step d-4) is negative, adding one to the variable and repeating sub-step d-2);   d-6) in a case where the determination of sub-step d-4) is affirmative, assigning each of the potential split entries that is attached with the tag as a confirmed split entry; and   d-7) with respect to any confirmed split entry that has a duplicate in other candidate groups, removing the duplicate of the confirmed split entry.   
     
     
         5 . The method of  claim 1 , each of the plurality of entries of accounting data further including a transaction amount sub-entry, wherein in step c), a plurality of candidate groups are tagged as candidate groups, the method further comprising: d′) with respect to each of the candidate groups, by the processor, determining whether an accumulated amount of transaction of all of the potential split entries included in the candidate group has exceeded a transaction amount threshold, and in a case where the accumulated amount of transaction of all of the potential split entries has exceeded the transaction amount threshold, adding a tag which indicates a confirmed split entry to each of the potential split entries included in the candidate group. 
     
     
         6 . The method of  claim 5 , wherein step d′) includes:
 d-1′) assigning an initial value to a variable which is to be associated with one of the potential split entries included in the candidate group; 
 d-2′) calculating an accumulated amount of transaction from a first one to a variable-associated one of the potential split entries included in the candidate group; 
 d-3′) determining whether the accumulated amount of transaction calculated in sub-step d-2′) has exceeded the transaction amount threshold; 
 d-4′) in a case where the determination of sub-step d-3′) is affirmative, adding the tag to each of the potential split entries included in the candidate group; 
 d-5′) in a case where the determination of sub-step d-3′) is negative, determining whether the variable corresponds to a last one of the potential split entries included in the candidate group; 
 d-6′) in a case where the determination of sub-step d-5′) is negative, adding one to the variable and repeating sub-step d-2′); 
 d-7′) in a case where the determination of sub-step d-5′) is affirmative, assigning each of the potential split entries that is attached with the tag as a confirmed split entry; and 
 d-8′) with respect to any confirmed split entry that has a duplicate in other candidate groups, removing the duplicate of the confirmed split entry. 
 
     
     
         7 . A system for auditing to detect transaction splitting activities, the system comprising a processor and a data storage connected to the processor, the data storage storing a plurality of entries of accounting data therein, each of the plurality of entries of accounting data including at least a transaction information sub-entry and a time sub-entry, wherein the processor is programmed to:
 perform a sorting operation on the plurality of entries of accounting data stored in the data storage based on the time sub-entries of the plurality of entries of accounting data, so as to create a sorted list of accounting data;   perform a grouping operation on the sorted list of accounting data, based on at least one grouping parameter and the transaction information sub-entries of the plurality of entries of accounting data, so as to obtain a plurality of groups of accounting data; and   with respect to each of the groups, determine whether the entries of accounting data included in the group indicate a date gap smaller than a predetermined time threshold, and in a case where the entries of accounting data included in the group indicate a date gap smaller than the predetermined time threshold, tag the group as a candidate group, and tag each of the entries of accounting data included in the candidate group as a potential split entry.   
     
     
         8 . The system of  claim 7 , wherein the processor is further programmed to, with respect to each of the groups:
 determine whether the entries of accounting data included in the group indicate a date gap smaller than a predetermined time threshold by determining whether a difference between an earliest date of transaction and a latest date of transaction included in the group is smaller than the predetermined time threshold; and   add a tag which indicates a potential split entry to each of the entries of accounting data included in the group in a case where the difference between the earliest date of transaction and the latest date of transaction included in the group is smaller than the predetermined time threshold.   
     
     
         9 . The system of  claim 7 , wherein the processor is further programmed to:
 with respect to each of those of the groups that is tagged as a candidate group, determine whether a number of potential split entries included in the group has reached a predetermined entry threshold, and in a case where the number of potential split entries included in the group has reached the predetermined entry threshold, add a tag which indicates a confirmed split entry to each of the potential split entries included in the group.   
     
     
         10 . The method of  claim 3 , wherein the processor is further programmed to, with respect to each of those of the groups that is tagged as a candidate group:
 assign an initial value to a variable which is to be associated with one of the potential split entries included in the group;   determine whether the variable has reached the predetermined entry threshold;   in a case where the variable has reached the predetermined entry threshold, add the tag to each of the potential split entries included in the group;   in a case where the variable has not reached the predetermined entry threshold, determine whether a current value of the variable equals a total number of the potential split entries included in the group;   in a case where the current value of the variable does not equal the total number of the potential split entries included in the group, add one to the variable and repeat the determination of whether the variable has reached the predetermined entry threshold;   in a case where the current value of the variable equals the total number of the potential split entries included in the group, assign each of the potential split entries that is attached with the tag as a confirmed split entry; and   with respect to any confirmed split entry that has a duplicate in another one of those of the groups that is tagged as a candidate group, remove the duplicate of the confirmed split entry.   
     
     
         11 . The system of  claim 7 , each of the plurality of entries of accounting data further including a transaction amount sub-entry, wherein the processor is further programmed to:
 with respect to each of those of the groups that is tagged as a candidate group, determine whether an accumulated amount of transaction of all of the potential split entries included in the group has exceeded a transaction amount threshold, and in a case where the accumulated amount of transaction of all of the potential split entries has exceeded the transaction amount threshold, add a tag which indicates a confirmed split entry to each of the potential split entries included in the group.   
     
     
         12 . The system of  claim 11 , wherein the processor is further programmed to, with respect to each of those of the groups that is tagged as a candidate group:
 assign an initial value to a variable which is to be associated with one of the potential split entries included in the group;   calculate an accumulated amount of transaction from a first one to a variable-associated one of the potential split entries included in the group;   determine whether the accumulated amount of transaction has exceeded the transaction amount threshold;   in a case where the accumulated amount of transaction has exceeded the transaction amount threshold, add the tag to each of the potential split entries included in the group;   in a case where the accumulated amount of transaction has not exceeded the transaction amount threshold, determine whether the variable corresponds to a last one of the potential split entries included in the group;   in a case where the variable does not correspond to the last one of the potential split entries included in the group, add one to the variable and repeat the calculation of the accumulated amount of transaction from the first one to a variable-associated one of the potential split entries included in the group;   in a case where the variable corresponds to the last one of the potential split entries included in the group, assign each of the potential split entries attached with the tag as a confirmed split entry; and   with respect to any confirmed split entry that has a duplicate in another one of those of the groups that is tagged as a candidate group, remove the duplicate of the confirmed split entry.